German industrial production dropped 4% from July to August, versus an expected decline of 1.5%. This is the biggest month-on-month drop in five years. The figure represents a 2.8% drop on the same month last year.
Similarly ugly numbers on factory orders released on Monday and the worrying business reports suggest the sector is in decline.
We don't yet have a full quarter's data, but Claus Vistesen at Pantheon Macroeconomics is already saying the German manufacturing sector "is in a recession."...